Stocks that have taken a beating often showcase a phoenix-like recovery, soaring spectacularly. One such exemplary tale is that of Tesla (NASDAQ:TSLA). After languishing in the early months of the year, the electric vehicle giant’s stock rebounded impressively, surging by 44% post-June and effectively nullifying its previous losses for the year in a mere 10 trading sessions.
Similarly, Apple (NASDAQ:AAPL) staged a remarkable comeback recently. Initially struggling and lagging behind the market, even staunch Apple supporter Warren Buffett cut his stake by 10%. Nevertheless, AAPL stock hit rock bottom in mid-April but has since climbed by 40%, now trading at record highs post-stock split.
Stocks often weather turbulent times. It’s crucial not to succumb to panic and view these downturns as an opportune moment for investment. Here are three battered stocks that seem primed for an impressive recovery.
Revitalizing Potential in Nike (NKE)
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Within the beleaguered Nike (NYSE:NKE), a glimmer of hope exists for investors. Purchasing the stock at its current 33% dip for the year, while also trading at a yearly low, could prove to be a prudent move. NKE stock’s downward trajectory likely won’t extend much further and is ripe for a rebound as the company embarks on a strategic turnaround. At 19 times future earnings, NKE stock is currently at its most affordable in a decade.
Nike’s predicament stems from sluggish Chinese sales and an ill-fated strategy that overprioritized its website and branded stores at the expense of third-party retailers like Foot Locker (NYSE:FL). Despite these setbacks, Nike is recalibrating its approach and making strides. Its wholesale revenue ticked up by 5% in the latest quarter.
The sportswear giant is also slated to trim costs by a staggering $2 billion across the next three years. Moreover, with an enviable brand reputation and a substantial market share of nearly 40%, Nike is poised for a notable resurgence in due course.
The Renaissance of Walt Disney Co. (DIS)
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For Walt Disney Co. (NYSE:DIS), it’s been a tale of advancement and retreat. The entertainment giant commenced the year on a strong footing, only to witness a plateau by Q1 end. Since then, DIS stock has plummeted by 22%.
Further complicating matters, the stock has languished as a consistent underperformer. Over the past half-decade, Disney’s stock price has shrunk by 33%, prompting activist investors to hone in on Disney’s executive team.
On a brighter note, Disney seems to be making a turnaround, hinting at an imminent sustained recovery in its stock value. The company has curbed expenditures on Disney+ content, announced a hefty $60 billion park division investment over the next decade, and initiated collaborations with fellow entertainment entities to bundle their streaming services and amalgamate content.
Though it may require time, the resurgence of DIS stock, when it materializes, is slated to be nothing short of astounding.
The Rejuvenation of Starbucks (SBUX)
The Path of Starbucks Stock Amidst Challenges
Struggling Stock Amidst Tough Times
The coffee giant Starbucks (NASDAQ:SBUX) is weathering a storm as its stock has plummeted to a 52-week low. Currently facing a 22% decline this year, SBUX shares are trading 19% lower than they were five years ago.
Finding Opportunity in the Dip
For astute investors with a long-term perspective, seizing the chance to buy at the stock’s lowest point in a year could prove advantageous.
Financial Turmoil and Strategic Turnaround
Starbucks suffered a blow with disappointing first-quarter financial results. Furthermore, the company slashed its future guidance, projecting ongoing underperformance in its coffee shops for several quarters.
A Ray of Hope
Amidst the challenges, a glimmer of hope emerges for SBUX stock. The company revealed a strategic blueprint late last year, planning to unveil 17,000 new locations by 2030 while implementing cost-cutting measures of $3 billion. Starbucks has also initiated labor talks with its unionized stores.
In Conclusion
Despite the setbacks, Starbucks stands out as an opportunity for investors eyeing a recovery. The strategic moves to expand and streamline operations could potentially lead to a rebound in the stock’s fortunes.